http://ec.europa.eu/taxation_custom...cts/studies_reports/ramboll-tobacco-study.pdf
Page 51
«A large number of Member States have expressed the need for clarity on the part of EU legislation with respect to the treatment of e-cigarettes from an excise duty per-spective.
Some of the Member States have reported that they would welcome the application of excise duties on e-cigarettes, citing both the need for health protection as well as the attainment of budgetary objectives.
One large Member State with a considerable market for e-cigarettes expressed its concern that as more economic operators (including the established manufacturers of excisable tobacco products) become involved with e-cigarettes, a future shift of con-sumption towards e-cigarettes can be expected. As a result, the budgetary implica-tions of not including e-cigarettes within the framework of the EU Directives may prove to be extremely significant.
The economic operators themselves raised concerns with respect to the competitive distortions caused by differentiated tax treatment between e-cigarettes and cigarettes and the inherent substitutability.»
Page 169
«In light of the increasing use of e-cigarettes as an alternative to tobacco cigarettes,122 it is assessed that the non-inclusion of this type of product in the common framework of excisable tobacco products will have a significant negative impact on the budgetary revenues of Member States. Moreover, as Member States are taking different ap-proaches in regulating the treatment and taxation of this product, the landscape may become fragmented, negatively impacting the functioning of the internal market. As a result, this evaluation recommends the Commission to investigate further the possibil-ity of including e-cigarettes within the scope of the harmonised system of excise duty on tobacco products. It is expected that such a measure will impose some administra-tive costs on Member States (as a one off cost of setting up the system) and compli-ance costs on the operators involved.»
Page 51
«A large number of Member States have expressed the need for clarity on the part of EU legislation with respect to the treatment of e-cigarettes from an excise duty per-spective.
Some of the Member States have reported that they would welcome the application of excise duties on e-cigarettes, citing both the need for health protection as well as the attainment of budgetary objectives.
One large Member State with a considerable market for e-cigarettes expressed its concern that as more economic operators (including the established manufacturers of excisable tobacco products) become involved with e-cigarettes, a future shift of con-sumption towards e-cigarettes can be expected. As a result, the budgetary implica-tions of not including e-cigarettes within the framework of the EU Directives may prove to be extremely significant.
The economic operators themselves raised concerns with respect to the competitive distortions caused by differentiated tax treatment between e-cigarettes and cigarettes and the inherent substitutability.»
Page 169
«In light of the increasing use of e-cigarettes as an alternative to tobacco cigarettes,122 it is assessed that the non-inclusion of this type of product in the common framework of excisable tobacco products will have a significant negative impact on the budgetary revenues of Member States. Moreover, as Member States are taking different ap-proaches in regulating the treatment and taxation of this product, the landscape may become fragmented, negatively impacting the functioning of the internal market. As a result, this evaluation recommends the Commission to investigate further the possibil-ity of including e-cigarettes within the scope of the harmonised system of excise duty on tobacco products. It is expected that such a measure will impose some administra-tive costs on Member States (as a one off cost of setting up the system) and compli-ance costs on the operators involved.»